If you’re already working, then you’re probably making some plans for the major future events, like retirement for example. I know, some of you will be like: “I’m way to young to start thinking about retirement now” but that would be just irresponsible. After all, you don’t want to depend only and entirely on what follows you by the law, do you? In such case, you’d be just another old, cranky grandparent and you’ll be living a boring, full of disappointment and bad energy life. Yup, nobody wants that. And since the Australian system for retirement offers the option to earn a little more for your golden age, you should take advantage of it.
The SMSF, or self-managed super fund is the type of fund in which the members are also its trustees. As you go through the course of your professional and personal life, you get to put a certain amount aside which will eventually become larger and given to you when you fulfil the retirement conditions. If you’re knowledgeable enough, you can choose to run your own fund and beside following the various laws regulating this area, you should pay special attention to choosing the right SMSF investment strategy example. Here you have the two most common investment choices that can increase the yield of your investment.
Investing in property has always been a good idea as long as you’re able to eventually turn that capital into clear cash. You can purchase an established property through your fund as long as it’s at arm’s length, not from a related party. You can invest in all types of property: residential (established houses and units, apartments), a combination of house and land package, dual key property and commercial property. Each option has its own advantages and disadvantages which is why if you choose a SMSF investment strategy example like this one, you should look at the needs and plans of each member so you conclude if it’s the right option for your fund.
The stock market is the other best place where you’d go if you want your money invested and multiplied instead of keeping them under your mattress without any purpose. You can’t buy shares on your own, but your fund can do that through brokers and investment bankers. Shares are a vast investment option and should be looked at from a few various angles: risk, diversification, price and issuer. There are rules about the type of shares where a fund can invest, but still, as an investor, you may want to get to know your investment target. Shares are a good option because you can find relatively cheap ones, and you can do a transaction with them pretty easy, which means high liquidity for your fund.
In conclusion, even if you’ve chosen to put some amount aside for your age of retirement, that doesn’t mean that cash should stay dead and ineffective. Plus, ATO laws won’t allow you, so before you invest your money in an existing fund or start your own, you should get to know a little more about investing strategically.